Airbus (ENXTPA:AIR) Valuation Check After Recent Pullback and Strong Year-to-Date Gains

Airbus (ENXTPA:AIR) has slid about 6% over the past month, even though the stock is still up roughly 20% year to date, a pattern that has many investors rechecking their assumptions.

See our latest analysis for Airbus.

That recent 6.6% one month share price pullback comes after a strong run driven by double digit revenue and earnings growth, and with a 24.5% one year total shareholder return, momentum looks more paused than broken at this point.

If Airbus has you rethinking aerospace exposure, this could be a good moment to scan other aerospace and defense stocks that might offer a different mix of growth and resilience.

With revenue and earnings still climbing, a 16% discount to analyst targets and a hefty estimated intrinsic discount suggest upside, but after a 3 year total return above 80%, investors may wonder whether this is still a buying opportunity or if future growth is already priced in.

Most Popular Narrative Narrative: 14.1% Undervalued

With Airbus last closing at €192.96 against a narrative fair value of €224.75, the current pullback sits in the shadow of a still bullish long term view.

Structural industry shift toward decarbonization and sustainability aligns with Airbus's portfolio and ongoing R&D investments, positioning the company to capture outsized share of new and replacement demand as environmental pressures mount, likely supporting higher net margins over time.

Read the complete narrative.

Want to see the math behind that premium margin story? The narrative leans on ambitious growth, firmer profitability and a rich future earnings multiple. Curious which assumptions really move the fair value dial?

Result: Fair Value of €224.75 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent engine supply bottlenecks and delays integrating key suppliers like Spirit AeroSystems could derail Airbus's planned production ramp and squeeze future margins.

Find out about the key risks to this Airbus narrative.

Build Your Own Airbus Narrative

If you see the outlook differently or want to dive into the numbers yourself, you can build a personalized Airbus thesis in under three minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Airbus.

Looking for more investment ideas beyond Airbus?

Stay ahead of the market by acting on fresh opportunities now, not later, and let the Simply Wall St Screener surface high conviction ideas tailored to your strategy.

• Capitalize on mispriced opportunities by scanning these 909 undervalued stocks based on cash flows that pair solid fundamentals with attractive entry points before the crowd catches on.
• Explore the next wave of intelligent innovation by focusing on these 25 AI penny stocks at the center of machine learning and automation trends.
• Strengthen your income stream by targeting these 13 dividend stocks with yields > 3% that may offer cash flow potential alongside possible capital appreciation.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com